Prime Minister Mark Carney’s office recently announced plans for a new Canadian facility to manufacture nitrocellulose, a key component in gunpowder.
Boosting Domestic Defence Production
The initiative was outlined in a 58-page defence industrial strategy released this week. While largely overlooked in initial media coverage, the strategy prioritizes establishing a domestic production capability for nitrocellulose. The plan involves a new Canadian Defence Industry Resilience (CDIR) program designed to bolster the country’s defence sector.
According to the strategy document, the CDIR program will “provide targeted support to Canadian businesses to increase their production capacity for defence-related goods, equipment, services and materials.” The initial focus will be on ammunition and explosives, with nitrocellulose production slated to begin by 2029.
Northern Ontario as a Potential Location
While the plant’s location has not been determined, northern Ontario is considered a strong candidate. The region is a major producer of wood pulp, the primary raw material for nitrocellulose. Last summer, city councilors in Sault Ste. Marie began exploring the possibility of attracting a defence production facility to the area, citing potential economic benefits.
A report by the National Bank of Canada, prepared in August 2025, underscored the strategic importance of domestic nitrocellulose production. The report noted that Canada is among the world’s top five pulp producers yet currently exports raw materials while importing the finished nitrocellulose product. The report suggests converting pulp into propellant could revitalize a trade-pressured industry.
Frequently Asked Questions
What is nitrocellulose used for?
Nitrocellulose has a wide range of applications, including use as the principal ingredient in modern gunpowder, solid rocket propellants, explosives, as well as in products like nail polishes and guitar lacquers.
What is the Canadian Defence Industry Resilience (CDIR) program?
The CDIR program is a new initiative announced by Prime Minister Carney to provide support to Canadian businesses to increase their production capacity for defence-related goods, with an initial focus on ammunition and explosives, including nitrocellulose.
Why is Canada looking to produce its own nitrocellulose?
Currently, Canada exports wood pulp but imports nitrocellulose. A report by the National Bank of Canada identified this as a vulnerability, especially with increasing global demand and fragile supply chains.
As Canada moves forward with this defence industrial strategy, will the proposed nitrocellulose plant successfully address supply chain vulnerabilities and stimulate economic growth in northern Ontario?
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